Assuming this initiative is new information and unrelated to existing corporate plans, the share price should potentially be $26.00.
The price-to-earnings ratio is the most widely used measure for estimating a stock's intrinsic worth. It's easy to use, and the data is easily accessible. The P/E ratio is computed by dividing the stock's price by its total 12-month trailing earnings.
After the offering is disclosed but before the right expires, the mathematically computed value of a subscription right (a right to buy stock)
The NPV of the new equipment = $500 million - $300 million
= $200 million.
This NPV is added to the current market value of CPM.
On a per-share basis, the addition is approximately $200 million / 100 million shares,
For a $2.00 new addition to the share price.
Theoretical share price = $24.00 + $2.00
= $26.00.
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